SOURCE: Bowne & Co., Inc.

July 09, 2008 17:53 ET

Standard & Poor's Rating Services Upgrades Bowne Corporate Credit Rating to 'BB-'

Outlook Reflects Flexibility in Bowne's Balance Sheet and Diversified Revenue Streams

NEW YORK, NY--(Marketwire - July 9, 2008) - Bowne & Co., Inc. (NYSE: BNE), a global leader in shareholder and marketing communications services, today announced that Standard & Poor's Ratings Services has upgraded its corporate credit rating to 'BB-' from 'B+' and stated that the outlook is stable.

Standard & Poor's stated that the upgrade reflects a reassessment of Bowne's business profile, taking into account recent acquisitions and management's relatively conservative financial policies. Standard & Poor's also said that Bowne's conservative balance sheet has enabled it to strengthen its capital structure, and that Bowne has diversified its revenue base in a manner that will allow the Company to absorb expected deterioration to its credit measures over the intermediate term as a result of depressed volumes in transaction-based financial communications services. Standard & Poor's indicated that despite Bowne's exposure to capital markets volatility, Bowne is expected to maintain credit measures commensurate with a 'BB-' rating.

According to Standard & Poor's, the stable outlook reflects flexibility in Bowne's balance sheet and its prudent efforts in diversifying its revenue base. Bowne has diversified its revenue streams by making acquisitions throughout 2007 and 2008 that have added incremental annual revenue of approximately $150 to $160 million, and expanded Bowne's client base and geographic footprint, while allowing the Company to leverage excess capacity at its production facilities. Standard & Poor's also cited the $50 million in annualized cost savings initiatives that the Company began implementing earlier this year.

Standard & Poor's stated that it expects Bowne to rely on cash balances, internal cash flow, and availability under its $150 million revolving credit facility as its primary source of liquidity for operating needs, and also expects its credit measures to remain adequate for the rating over the business cycle, with leveraging 4.5x on average, providing sufficient cushion against the cyclicality in capital markets activity. For further analysis, please see Standard & Poor's press release.

About Bowne & Co., Inc.

Bowne & Co., Inc. (NYSE: BNE) provides shareholder and marketing communications services around the world. Dealmakers rely on Bowne to handle critical transactional communications with speed and accuracy. Compliance professionals turn to Bowne to prepare and file regulatory and shareholder communications online and in print. Marketers look to Bowne to create and distribute customized, one-to-one communications on demand. With 3,800 employees in 60 offices around the globe, Bowne has met the ever-changing demands of its clients for more than 230 years. For more information, please visit www.bowne.com

Contact Information

  • Investor Relations Contact:
    John J. Walker
    SVP & Chief Financial Officer
    212-658-5804
    john.walker@bowne.com

    Media Contact:
    Pamela Blum
    Director, Corporate Communications
    212-658-5884
    pamela.blum@bowne.com

    Bowne & Co., Inc.
    55 Water Street
    New York, NY 10041
    (212) 924-5500
    Fax: (212) 658-5871